Insurance Australia Group’s (IAG) CGU Insurance (CGU) has launched its third STRIVE report, marking the most extensive edition in its series to date.
The report, titled “STRIVE 3.0,” aims to provide brokers with vital industry insights and data trends, addressing the shifting landscape in general insurance and broader economic conditions in Australia.
The 2024 report tackles a range of topics crucial to brokers, including:
CGU highlighted these areas as key considerations for brokers in navigating current and future challenges within the industry.
CGU executive general manager Damien Gallagher said the report reflects the company’s commitment to supporting its broker partners with critical insights.
“We’re proud to deliver STRIVE 3.0, which draws upon more than 160 years of accrued knowledge, data, and insights from within our business, and from our parent company, IAG, Australia’s largest general insurer,” he said. “We deliver this report as part of our ongoing commitment to equip our brokers, partners, and customers with the information needed to help prepare them for what lies ahead.”
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The report also included insights from Pegah Vaghaye, CGU executive manager of broker relationships, who emphasised the important role of brokers as trusted advisors.
“We know brokers are playing an increasingly important role as trusted advisors, supporting their customers in understanding their specific risk environment amid a changing landscape,” she said.
CGU’s report explored the economic pressures affecting Australian households and businesses, with rising living costs making insurance less affordable for some.
The data indicated that household insurance affordability stress has risen from 10% in 2022 to 15% in 2024, and there is an increasing trend of underinsurance as people adjust their coverage levels to cut costs. This trend has significant implications for policyholders’ financial resilience, as reduced coverage leaves many exposed to risk.
The report also pointed to insolvency challenges faced by small and medium-sized enterprises (SMEs). Business failures, particularly within the transport, postal, and warehousing sectors, reached a 15-year high in 2023-24.
Brokers, CGU suggests, can play a critical role in helping these clients manage complex risks and protect themselves against financial setbacks.
The impact of technology on the insurance landscape is also a major focus in STRIVE 3.0, with cybersecurity risks receiving particular attention.
Data breaches, phishing scams, and other cyber incidents have continued to rise, with phishing accounting for over one-fifth of reported cyber-attacks in 2024.
In response, CGU has launched CYLO, a new cyber insurance solution for SMEs, developed in partnership with the cybersecurity firm UpGuard. The solution offers a three-part approach: it assesses cyber risk, provides coverage, and supports incident response and claims management.
With severe weather events increasing in both frequency and intensity, the report addressed climate-related risks and upcoming regulatory standards for sustainability reporting.
From January 2025, new sustainability disclosure requirements will mandate that insurers report their greenhouse gas emissions and outline plans for achieving net zero. CGU’s report underscored the potential for these changes to reshape the industry’s approach to climate risk and push for greater resilience against natural disasters.
The report also supported calls for land planning policies to integrate climate resilience, particularly in flood-prone areas.
As part of these efforts, CGU has been active in the Australian Business Roundtable for Disaster Resilience, contributing to research aimed at helping communities and industries mitigate disaster risk.
CGU’s STRIVE 3.0 included a section on generational challenges within the workforce, noting how evolving expectations and communication styles may impact engagement in insurance workplaces. The report suggests insurers and brokers consider tailored engagement strategies to bridge generational divides and foster more inclusive workplaces.
In conjunction with its release of STRIVE 3.0, CGU has announced a new cultural partnership with the National Gallery of Victoria (NGV).
The partnership includes sponsorship of the 2025 Melbourne Winter Masterpieces, featuring a major French Impressionism exhibition.
This exhibit, which includes artworks on loan from Boston’s Museum of Fine Arts, is expected to draw significant public interest.
